Odin AI's Invoice Validator: Your Path to Error-Free Invoices

The billing department often faces the labor-intensive task of cross-validating order forms and customer POs against invoice attributes, leading to invoice discrepancies and delays. This invoice checking process involves significant manual data entry and invoice validation, increasing the risk of errors and impacting accounts payable workflows.

Odin AI’s Invoice Validator offers a groundbreaking solution that transforms invoice verification. Leveraging Generative AI (Gen AI), Odin AI automates the invoice verification process, ensuring seamless and error-free operations. This AI-powered invoice processing tool extracts and validates data from order forms and POs, ensuring compliance without manual intervention. Utilizing machine learning and natural language processing, Odin AI enhances accuracy and significantly reduces the time and effort required for invoice verification and approval automation.

With Odin AI’s Invoice Validator, businesses gain improved payment processing, reduced manual invoice processing, and enhanced regulatory compliance, revolutionizing their billing efficiency and accuracy.

In this blog, we’ll delve into how Odin AI works, its benefits, and real-world applications that showcase its transformative impact on billing operations.

What Is Invoice Validation?

Invoice validation is a crucial process in the billing cycle where invoices are checked for accuracy and completeness before they are approved for payment. This involves cross-referencing invoice details with corresponding order forms and customer purchase orders (POs) to ensure that all attributes match correctly. Key elements verified include invoice numbers, payment terms, line items, ship-to and bill-to addresses, and total amounts.

Invoice Validation Software

Effective invoice processing software can resolve many issues associated with manual invoice validation. This software automatically captures relevant data from invoices and populates the relevant fields in a database. Additionally, it matches this data with corresponding information from other documents involved in the purchasing process. Depending on organizational needs, invoice validation software can perform 2-way, 3-way, or 4-way matching.

In 2-way matching, the invoice is automatically compared with the purchase order to ensure that the goods or services requested were delivered and billed correctly.
In 3-way matching, the data from the invoice is matched with both the purchase order and receipt documents.
The most complex form, 4-way matching, includes inspection slips along with the purchase order, receipt documents, and invoice for thorough validation. Furthermore, the software can be customized to match invoices to contracts as needed.

Traditional vs. Automated Invoice Validation Process

Aspect	Traditional Manual Validation	Automated Validation
Process	Labor-intensive, involving significant manual data entry and invoice validation	Streamlined and automated using AI invoice automation, Generative AI, machine learning, and natural language processing
Invoice Checking	Manually cross-validated against order forms and customer POs	Automated Invoice Matching ensures regular, timely validation
Verification Details	Verification of invoice numbers, payment terms, line items, ship-to and bill-to addresses, quote numbers, and total amounts	AI invoice data capture extracts and validates relevant invoice information from incoming invoices
Error Rate	High risk of invoice discrepancies due to human errors	Enhanced accuracy with reduced errors through invoice verification software and invoice validation software
Handling Invoices	Involves paper invoices, increasing risk of document misplacement and delays	Ensures compliance with regulations and updates accounts payable ai systems seamlessly
Time Efficiency	Time-consuming, impacting overall accounts payable workflows	Significant reduction in time required for invoice processing and payment processing
Operational Efficiency	Manual process disrupts accounts payable processes	Improved cash flow and operational efficiency through faster and more reliable invoice handling
Financial Planning	Limited efficiency in financial planning	Comprehensive invoice automation benefits, including better financial reporting, planning and cost savings
Volume Handling	Challenging to manage high volume invoice processing	Capable of handling high volume invoice processing seamlessly
Focus	Teams spend valuable time on manual intervention and tedious tasks	Frees up billing teams to focus on higher-value tasks

This table clearly contrasts the traditional manual validation process with automated validation, highlighting the benefits and efficiencies of automating the invoice verification process.

See Odin AI in action—schedule your demo now

Enhanced Automation for Invoice Processing with Odin AI

The most basic automation tool for invoice processing is Optical Character Recognition (OCR) for data capture. This technology combines image capture hardware and conversion software to transform invoices into structured text, which is then manually processed by the accounting team. However, OCR only digitizes the data and requires additional manual data validation, as it does not perform any data matching.

Odin AI goes beyond basic OCR by integrating more advanced invoice validation tools, including:

Robotic Process Automation (RPA): RPA automates repetitive tasks by mimicking human actions, streamlining basic processes that would otherwise require manual effort. With Odin AI, RPA is seamlessly integrated into the invoice processing workflow, enhancing efficiency.
Artificial Intelligence (AI): AI simulates human judgment and behavior to match purchase orders (POs), invoices, and receipts. Odin AI leverages AI to excel in comparing and matching records, making validation decisions such as approving transactions, flagging errors, or raising exceptions. This ensures that the invoice verification process is not only automated but also highly accurate.
Machine Learning (ML): A subset of AI, ML enables computers to “learn from experience” through algorithms like Neural Networks, which mimic the brain’s learning process. Odin AI utilizes ML to continuously improve its accuracy in data matching and validation over time, adapting to the specific needs and patterns of your organization.

These sophisticated automated invoice processing tools, powered by Odin AI, can capture essential information from invoices, POs, and other financial documents, automating the processing in a way that replicates human cognitive functions. Odin AI’s invoice processing, in particular, is highly effective at comparing and matching records, making validation decisions, and ensuring accurate and efficient invoice handling.

With Odin AI, you can achieve:

2-way Matching: Automatically compares invoices with purchase orders to ensure that what was ordered matches what was delivered and billed.
3-way Matching: Extends the comparison to include receipt documents, ensuring that all aspects of the transaction are validated.
4-way Matching: Incorporates inspection slips into the validation process for the most comprehensive check.

This level of automation provided by Odin AI not only enhances accuracy and efficiency but also ensures that your invoice verification process is thorough and reliable, reducing the risk of errors and streamlining your accounts payable workflow.

Transform your billing process with Odin AI now!

How Odin AI’s Invoice Validator Works

Odin AI’s Invoice Validator leverages advanced technologies to transform the invoice verification process, ensuring accuracy, efficiency, and compliance. Here’s a detailed look at how it works:

Scenario #1 When Invoice Matches with Order Form and PO

Step 1: Unattended Automation Execution

Odin AI’s Invoice Validator runs unattended automation at regular intervals, typically every 30 minutes. This frequent validation ensures that any incoming invoices are promptly processed and checked against the necessary criteria. The automation runs seamlessly in the background, requiring no manual intervention.

Regular Intervals: The system is set to operate automatically every 30 minutes, ensuring that no invoice is left unchecked for too long.
Unattended Operation: This means that once set up, the automation does not require human oversight, freeing up billing teams to focus on other tasks.
Continuous Processing: The frequent runs help in maintaining an up-to-date system, handling even high volume invoice processing efficiently.
Workflow Efficiency: Helps prevent bottlenecks and ensures a smooth, uninterrupted workflow in the billing process.

This approach ensures that the system is always up-to-date, handling high volumes efficiently and reducing the workload on billing teams.

Step 2: Report Download from Salesforce

The system integrates with Salesforce, allowing it to automatically download a detailed report of invoices in draft status.

Data Accuracy: The report includes all relevant invoice data needed for validation, such as invoice numbers, customer details, and order references.
Streamlined Data Collection: Pulling data directly from Salesforce ensures the information is current and accurate.
Foundation for Validation: This integration reduces the risk of manual errors and creates a solid foundation for subsequent validation steps.

By pulling data directly from Salesforce, Odin AI ensures accurate and up-to-date information for processing.

Step 3: Data Extraction and Cross-Validation

Using AI invoice data capture, the tool extracts data from the attached order forms and customer POs. This process employs machine learning and natural language processing to ensure precise data extraction. The system identifies and extracts key elements such as:

Ship-to and Bill-to Addresses: Verifying that the delivery and billing addresses on the invoice match those on the order forms and POs.
Quote Numbers: Ensuring the quote number on the invoice corresponds with the issued quote, confirming the agreed terms and conditions.
Payment Terms: Checking that the payment terms, such as due dates and payment conditions, align with those agreed upon in the order forms.
Product Lines: Validating the listed products and services, including quantities and descriptions, against the order details.
Total Amounts: Confirming that the total amount billed matches the sum of the items listed in the order forms and POs.

This step is crucial for ensuring that every detail on the invoice is accurate. The system’s ability to extract and cross-validate data automatically significantly reduces the risk of errors that can occur during manual data entry. By using sophisticated algorithms, the system ensures that all key invoice attributes are validated against the original documents, providing a high level of accuracy and reliability.

Step 4: Automated Invoice Matching

During the Automated Invoice Matching process, the system rigorously checks the invoice against the corresponding order forms and POs.

Data Point Comparison: Compares detailed attributes such as product descriptions, quantities, unit prices, and totals.
Validation Confirmation: Ensures all data points align perfectly, confirming the invoice’s accuracy and readiness for processing.
Eliminating Manual Cross-Checking: Enhances both speed and precision of the validation process.

This automated matching process ensures that only accurate invoices proceed to the approval stage, reducing the risk of discrepancies and payment delays.

Step 5: Posting the Invoice

Once all 8 validations pass, the system automatically posts the invoice to the accounting system and sends it to the customer. This step includes updating the invoice notes in Salesforce, providing a clear audit trail for the billing team. Posting the invoice involves several sub-steps:

Approval Process: The validated invoice is marked as approved in the system.
Invoice Dispatch: The approved invoice is sent to the customer via email or integrated electronic invoicing systems.
System Update: Relevant records in the accounting software and Salesforce are updated to reflect the invoice status.

This process ensures that the invoice is accurate and timely, ready for payment processing.

Step 6: Document Review and Audit Report

Odin AI generates a comprehensive audit report that captures all actions and validations performed for each invoice line.

Detailed Record Keeping: Includes PO details (total amount, ship-to and bill-to addresses, line items, and products) and order form details (payment terms, product lines, and total amount).
Regulatory Compliance: Ensures regulatory compliance and maintains transparency.
Audit Trail: Crucial for internal audits and external regulatory reviews.

The audit report provides a detailed record of each step in the invoice verification process, offering insights into the validation process and ensuring compliance.

Step 7: Successful Match and Invoice Posting

If the match is successful, and the invoice is posted, the automation sends the invoice to the customer. This step ensures that the customer promptly receives an accurate and validated invoice, maintaining smooth and reliable business operations.

Customer Notification: Ensures that customers are informed of their invoices quickly, aiding in timely payment processing.
Seamless Operations: Maintains a smooth flow of operations by ensuring that only validated invoices are sent out.

Here is the audit report which captures actions and validations performed by Odin AI for each invoice line. This report is critical for maintaining transparency and providing a comprehensive overview of the validation process.

Step 8: Handling Discrepancies

If the invoice validation identifies discrepancies, such as mismatched addresses or payment terms, the invoice is not posted. Instead, the system takes the following actions:

Salesforce Update: Updates Salesforce with specific details of the mismatch.
Notification: Sends an email notification to the billing team, detailing the discrepancy and including an output report that highlights the success and failure of each invoice.
Review and Resolution: The billing team reviews the discrepancies and takes necessary actions to resolve them, ensuring that only accurate invoices are processed.

This proactive approach ensures that any issues are promptly addressed, preventing incorrect invoices from being processed and reducing the risk of financial errors.

Simplify your workflow—adopt Odin AI today!

Scenario #2 When Invoice Does Not Match with Order Form and PO

Step 1: Detection of Mismatch

Odin identifies mismatches, for instance, discrepancies in the PO shipping address. The system scans the invoice details and compares them with the corresponding order forms and POs. This step is crucial in ensuring that any errors are caught early in the process, preventing incorrect invoices from being processed.

Mismatch Identification: The system meticulously checks each data point, such as addresses, invoice numbers, payment terms, and line items, to detect any inconsistencies.
Highlighting Errors: When a mismatch is found, the system flags the specific data point that does not align with the expected values.
AI-Powered Analysis: Utilizes machine learning and natural language processing to accurately pinpoint errors and discrepancies.

By identifying mismatches early, the system ensures that only accurate invoices proceed to the next stages of processing.

Step 2: Invoice Not Posted

When a mismatch is detected, the invoice remains unposted. The system updates notes in Salesforce to indicate the specific mismatch, ensuring transparency and providing clear guidance for further action.

Preventing Errors: The invoice is held back from being posted, preventing any erroneous transactions from occurring.
Salesforce Update: Notes are automatically updated in Salesforce, specifying the nature of the mismatch and the data points involved.
Clear Documentation: Provides detailed information for the billing team to understand and address the issue.

This step ensures that incorrect invoices are not processed, maintaining the integrity of the billing system.

Step 3: Notification and Reporting

The billing team receives an email with an output report detailing the success and failure reasons for each invoice. This notification system keeps the team informed and allows them to take corrective actions promptly.

Email Notification: Sends an immediate alert to the billing team, highlighting the invoices that have failed validation.
Detailed Output Report: The report includes specific reasons for the failures, such as mismatched addresses, incorrect payment terms, or other discrepancies.
Actionable Insights: Provides clear and actionable insights, enabling the billing team to quickly address and resolve the issues.

By keeping the billing team informed, the system ensures that financial discrepancies are handled efficiently and effectively.

Step 4: Audit Report

Automation provides an audit report capturing the details of the failed validation. This report is essential for maintaining transparency and ensuring regulatory compliance.

Comprehensive Record: The audit report includes all actions taken during the validation process, highlighting where and why the invoice failed.
Regulatory Compliance: Ensures that all validation steps are documented, meeting regulatory requirements and standards.
Historical Data: Keeps a historical record of all discrepancies and the steps taken to resolve them, which is useful for future audits and reviews.

The audit report serves as a vital tool for internal reviews and regulatory audits, providing a clear and detailed record of the validation process.

Interested in transforming your billing process? Reach out now!

Before And After Implementation

Checking Chatbot Analytics on Odin AI

Experience unparalleled insights into your chatbot’s performance with Odin AI’s comprehensive analytics page.

Access the Analytics Page

Log in to your Odin AI account> Public Tools > Analytics

Aspect	Before Odin AI Implementation	After Odin AI Implementation	Impact
Invoice Processing Time	4-6 hours per invoice	10-15 seconds per invoice	Processing time reduced by over 99%, drastically enhancing productivity.
Operational Costs	$50,000/month on manual processing	Reduced by 50%	Achieved 70% cost savings, significantly reducing operational expenses.
Data Extraction Accuracy	55% accuracy with manual entry	95% accuracy with AI and automation	Enhanced accuracy, minimizing the risk of costly errors and discrepancies.
Invoice Volume Capacity	Limited to 500 invoices/month	Scalable to 20,000+ invoices/month	Enabled efficient scaling, supporting rapid business growth and expansion.
Customer Experience	Frequent delays and errors	Swift and reliable invoice turnaround	Increased customer satisfaction and trust due to prompt and accurate billing.
Resource Allocation	60% of team’s time on manual tasks	20% of team’s time on oversight	20% of team’s time on oversight

Need help with invoice automation? Contact us today!

Features of Odin AI’s Invoice Validator

Accelerated Invoice Processing

Imports data automatically from various digital formats, including XML, PDF, and e-invoices.
Handles complex invoices with multiple tables, currencies, and pages.
Uses advanced OCR technology to swiftly convert paper invoices to digital format.
Utilizes machine learning for rapid scanning and accurate data capture.

Efficient Invoice Management

Provides real-time monitoring for all invoices.
Ensures secure and organized centralized storage for invoicing records.
Implements retention rules to guarantee compliance.

Optimized Validation Processes

Automates GL coding and performs precise two- and three-way matching.
Conducts detailed line-item checks and complies with regional e-invoicing regulations.
Sends instant alerts for discrepancies, ensuring data accuracy.
Offers customizable tolerance levels for ideal invoice matching.

Comprehensive Analytics and Reporting

Tracks key metrics to maintain control over the invoice lifecycle.
Analyzes trends to forecast expenses and benchmark KPIs.
Generates custom reports to deliver necessary insights promptly.

Quick and Efficient Approvals

Streamlines invoice approvals with an automated system.
Customizes approval workflows to meet departmental needs.
Sends scheduled reminders to approvers to ensure timely action.
Tracks approvals effortlessly and forwards invoices for swift payment.

Enhanced Security Measures

Detects fraud using AI and supports multi-factor authentication.
Secures invoices with timestamps and electronic signatures.
Manages access through customizable user permissions.

Benefits of Using Odin AI’s Invoice Validator

Enhanced Accuracy: Reduces errors through advanced invoice verification software and invoice validation software, ensuring correct processing.
Time Efficiency: Significantly cuts down the time required for invoice processing and manual data entry, allowing billing teams to focus on higher-value tasks.
Cost Savings: Lowers operational costs by decreasing the need for manual intervention, leading to substantial invoice automation benefits.
Operational Efficiency: Improves accounts payable workflows and cash flow management, facilitating better financial planning and decision-making.
Scalability: Handles high volume invoice processing seamlessly, making it suitable for businesses of all sizes.
Error Reduction: Minimizes the risk of invoice discrepancies by utilizing machine learning and natural language processing for precise data extraction and validation.
Automation of Tedious Tasks: Automates repetitive tasks such as invoice checking, invoice approval automation, and automated invoice matching, freeing up resources for more strategic activities.
Improved Payment Processing: Enhances payment processing efficiency by ensuring timely and accurate invoicing, contributing to better cash flow.
Comprehensive Audit Trail: Provides a thorough audit report capturing all actions and validations, ensuring regulatory compliance and maintaining transparency.
Reduced Manual Errors: Decreases the likelihood of human errors in the invoice verification process, enhancing overall accuracy.
Improved Data Management: Utilizes AI invoice data capture for efficient data extraction and management, ensuring all relevant data is accurately recorded and validated.
Seamless Integration: Integrates with existing systems like Salesforce, ensuring smooth data flow and reducing the need for manual data entry.
Enhanced Operational Efficiency: Streamlines the entire invoice processing cycle, improving overall operational efficiency and effectiveness.

Let’s talk about how Odin AI can benefit your business—contact us!

Testimonials From Billing Teams

Sarah Lopez, Billing Manager

“Switching to Odin AI’s Invoice Validator has been a total game-changer for us! No more late nights buried in paperwork. The invoice checking process is now a breeze, and we catch errors way before they become a problem. I actually have time to enjoy my coffee now!”

Jake Miller, Accounts Payable Specialist

“We used to dread the end-of-month crunch, but not anymore! With AI invoice automation, everything runs so smoothly. The system’s invoice validation software catches mistakes we’d have missed, and it’s like having an extra pair of eyes that never gets tired. Total lifesaver!”

Don’t wait—contact us and improve your invoice processing today!

Process Your Invoices In Seconds, Not Days With End-To-End Automation

In the hustle and bustle of modern business, every minute and every dollar counts. Imagine a world where your billing team no longer drowns in tedious manual data entry, where invoice discrepancies and processing delays are a thing of the past. With Odin AI’s Invoice Validator, this dream becomes a reality.

Your team can now focus on what truly matters – driving innovation and growth, while we take care of the tedious, yet critical, invoice verification process.

Because your team deserves more than just a job—they deserve a purpose.

Experience the peace of mind that comes with knowing your billing operations are in the best hands.

“Empower your business with Odin AI – because every moment saved is a moment gained for growth and innovation.”

Have more questions?

Contact our sales team to learn more about how Odin AI can benefit your business.

FAQs

What is invoice validation?

Invoice validation is the process of checking invoices for accuracy and completeness before approval for payment. This involves cross-referencing invoice details with order forms and purchase orders to ensure all attributes match correctly.

What is AI in billing?

AI in billing refers to the use of artificial intelligence technologies like machine learning and natural language processing to automate and improve billing processes. This includes tasks like data extraction, invoice validation, error detection, and payment processing, enhancing accuracy and efficiency of payable operations.

How to automate invoice processing?

To automate invoice processing, implement AI-powered solutions like Odin AI’s Invoice Validator. These solutions use Generative AI, machine learning, and natural language processing to automate data extraction, cross-validation, and posting of invoices, significantly reducing manual intervention and errors.

How can I get started with Odin AI’s Invoice Validator?

To get started with Odin AI’s Invoice Validator, contact our team for more information, schedule a demo, or discuss how our solutions can benefit your business. Reach out to us today!

What are the benefits of automated invoice processing?

Automated invoice processing offers numerous benefits including reduced errors, faster processing times, lower operational costs, improved accuracy, and enhanced scalability. It frees up resources for more strategic tasks and ensures regulatory compliance.

How can I reduce manual invoice processing?

You can reduce manual invoice processing by implementing AI invoice automation tools like Odin AI’s Invoice Validator, which automates data extraction, validation, and posting of invoices, significantly reducing the need for manual intervention.

How do you read an invoice?

Reading an invoice involves checking key details such as invoice numbers, payment terms, line items, ship-to and bill-to addresses, total amounts, and any additional notes or conditions specified. Ensuring all these details match the associated order forms and purchase orders is crucial for accuracy.

How many invoices can one person process manually in a day?

Manually, one person can typically process between 20 to 40 invoices per day, depending on the complexity of the invoices and the accuracy required. This number can be significantly higher with the aid of automated tools, freeing up personnel for other tasks.

How many invoices can be processed in a day with automated solutions?

With automated solutions like Odin AI, businesses can process thousands of invoices per day, depending on the system's capacity and the volume of incoming invoices received. Automation significantly increases the number of invoices that can be handled efficiently.

Can Odin AI handle high volumes of invoices?

Yes, Odin AI is scalable and can handle high volumes of invoices effortlessly, making it suitable for businesses of all sizes.

How much time can Odin AI’s Invoice Validator save?

Odin AI’s Invoice Validator can reduce invoice processing time from 4-6 hours per invoice to just 10-15 seconds, drastically enhancing productivity and efficiency.